NEW YORK--(BUSINESS WIRE)--Three-quarters of active individual investors and 86% of Millennial
active individual investors describe themselves as interested in
sustainable investing, according to a new survey published today by the
Morgan Stanley Institute for Sustainable Investing. The second edition
of the investor survey, Sustainable Signals, examines the attitudes,
perceptions and behaviors of individual investors towards sustainable
investing and considers the broader implications for investors,
corporations and governments. Following the last Sustainable Signals
report released in 2015, the new findings show interest in sustainable
investing continuing to increase with investors’ growing belief that
their investments can make a positive social or environmental impact.

“As widespread attention to sustainability continues to increase,
consumers and investors alike are now more than ever factoring
sustainability issues into their investment decisions,” said Audrey
Choi, Chief Sustainability Officer and Chief Marketing Officer at Morgan
Stanley. “The Morgan Stanley Institute for Sustainable Investing works
to drive scalable investment solutions that seek to deliver positive
social or environmental impact alongside the market-rate returns that
clients expect.”

Values Matter. Consciousness around sustainability has leapt
from the consumer space to the investment space. According to the
latest survey, investor attention to sustainability factors is now
growing faster than that of consumers as a whole.

Environmental impact. Increased interest in sustainable
investing occurred despite a heightened sense of market volatility,
implying perhaps that in uncertain times, companies and funds with
sustainable attributes may be viewed as more stable over the long run.
71% of investors polled agreed that good social, environmental and
governance practices can potentially lead to higher profitability and
may be better long-term investments.

Focus on Customization. The poll showed a strong desire for the
ability to customize sustainable investments; 80% of individual
investors and 89% of Millennials are interested in sustainable
investments that can be customized to meet their interests and goals.

Sustainable Investing in the Workplace. With Millennials
projected to make up 75% of the American workforce by 2025, it’s
interesting to note that nine out of ten Millennial investors (90%)
expressed interest in pursuing sustainable investments as part of
their 401(k) portfolios. This implies that offering sustainable
investment funds as 401(k) options may be an additional way for
companies to attract and retain Millennial talent in competitive job
markets.

Millennials continue to fuel growth. Nearly nine in ten Millennials
surveyed (86%) are interested in sustainable investing, compared with
three-quarters of individual investors overall (75%). This heightened
interest is likely tied to Millennials’ strong belief that they can make
a positive difference with their own investments. Related findings from
the survey include:

Influence. 75% agree that it is possible for “my investment
decisions to influence the amount of climate change caused by human
activities," compared with 58% of the total individual investor
population.

Impact. 84% agree that it is possible for “my investment
decisions to create economic growth that lifts people out of poverty,"
compared with 79% of the total individual investor population surveyed.

The Morgan Stanley Institute for Sustainable Investing builds scalable
finance solutions that seek to deliver competitive financial returns
while driving positive environmental and social impact. The Institute
creates innovative financial products, thoughtful insights and capacity
building programs that help maximize capital to create a more
sustainable future. For more information about the Morgan Stanley
Institute for Sustainable Investing, visit www.morganstanley.com/sustainableinvesting.

This is for informational purposes only, and is not a solicitation of
any offer to buy or sell any security or other financial instrument or
to participate in any trading strategy. This material contains forward
looking statements and there can be no guarantee that they will come to
pass. Information contained herein is based on data from multiple
sources and Morgan Stanley makes no representation as to the accuracy or
completeness of data from sources outside of Morgan Stanley.